08 Jun Construction businesses to reduce carbon emissions
Construction businesses bidding for public contracts from the end of September will need to include plans to reduce their carbon emissions or be excluded from the process.
The new rules, set out by the Cabinet Office on the weekend, will require businesses to specify their carbon-reduction schemes in their tendering documents for any job worth more than £5m.
Companies will also have to make their carbon-reduction plans available on their websites and commit to becoming net zero by 2050. The new rules will require the reporting of Scope 3 emissions, including methods of transport, distribution and waste.
In a procurement policy note, the Cabinet Office warned that the bidding firm must clearly outline what measures it has taken to reduce carbon emissions from a baseline year prior to the introduction of any carbon reduction strategies.
It must also include a projection for how these strategies will reduce carbon emissions over the next five years, and have the statement signed off by a director.
The plan will need to be updated each year and “clearly signposted” on the firm’s website, the policy note said.
The measures have been created to apply to UK-wide tenders, but have yet to be taken up by devolved governments in Wales, Scotland and Northern Ireland.